On January 1, 2017, Nelson Company was started when its sole shareholder invested cash of $147,722 in exchange Nelson Company common stock. The company immediately used all of the cash and purchased two investments. (1) It paid $107,722 for $100,000 face value, 6%, 10 year Lewis Co. bonds dated January 1, 2017 that pay interest annually on December 31, of each year beginning on December 31, 2017. The annual yield rate of the bonds on January 1, 2017 was 5% and (2) it paid $40,000 for 1,000 shares ($40 per share) of Hilton Co. common stock. The bond investment is considered an available for sale security.

Nelson’s balance sheet on January 1, 2017 immediately after the 2 purchases was:

            Assets                                                  Equity

Investments     $147,722                     Common Stock           $147,722

The following information applies to 2017

1. In December of 2017, Nelson received $1,000 cash after Hilton declared and paid a $1 per share cash dividend.

2. On December 31, 2017 Nelson received the annual coupon payment from Lewis Co.

3. Market values on 12/31/17 were:

Hilton Co. stock                      $48 per share

Lewis Co bonds                      $103,476

The following information applies to 2018

4. In December of 2018, Nelson received $1,000 cash after Hilton declared and paid a $1 per share cash dividend.

5. On December 31, 2018 Nelson received the annual coupon payment from Lewis Co.

6. Market values on 12/31/18 were:

Hilton Co. stock                      $55 per share

Lewis Co bonds                      $100,000

Directions: Complete an amortization schedule for the bond investment on the spreadsheet that was attached to the e-mail that I sent you. Also fill in the correct amounts in the light blue cells on the spreadsheet. These amounts are items appearing on the financial statements of Nelson Company based on the information given above.

Print the completed assignment and turn it in as you come to class on Thursday, February 22, 2018. The Print Area has already been set.

Be sure your spreadsheet looks professional. Copying one of your fellow student’s file is considered unprofessional conduct and will not be tolerated. I want to see your work, not the work of your classmate.